FCEC and Kanza Coop merger approved

0
252

GARDEN PLAIN AND IUKA, Kan. — Members of Farmers Cooperative Elevator Company – Garden Plain (FCEC) approved a proposal to merge with Kanza Cooperative Association (Kanza) during a special meeting in Cheney on May 23. The vote received the required two-thirds majority required by Kansas law –180 affirmative and 85 dissenting.

“We had an excellent turnout from the membership and are very pleased that the majority approved the merger,” said Dixie Brewster, Board President of FCEC. “This vote has set our cooperative on the best track to maintaining high-quality service and products to our members, stay the employer of choice in our communities, and protect our members’ equity for generations to come.”

This vote was the final step in approval of the merger proposed by the FCEC and Kanza boards, who unanimously signed the definitive agreement for a merger in March. The organizations will officially be combined into one entity on September 1, 2024.

“We are excited for the synergy that is possible as we bring these two strong cooperatives together,” said Alvin Neville, Board Chair of Kanza. “We have so much in common from geography to service to strong financial positions. Together we will create a better cooperative for our members, employees, and the communities we serve.

Based on the latest full fiscal year, the combined cooperative’s agronomy, grain, energy, and feed business is projected to generate $407 million in sales with $285 million in total assets. The combined entity will operate from 31 locations and employ 204 full-time personnel.

The administrative headquarters of the combined cooperative will remain Iuka, KS, and it will retain the name Kanza Cooperative Association. Alan Woodard will continue as the CEO, and Rusty Morehead, the current FCEC GM, will hold a key leadership position as a key employee.

LEAVE A REPLY

Please enter your comment!
Please enter your name here